EURUSD Makes Headway Lower In The Market

EURUSD Analysis: The bears strive to gain control

EURUSD makes headway lower in the market as bears seek dominance. The EURUSD pair has been on a bit of a rollercoaster lately. This is because the bears have been flexing their muscles and aiming for control. These bears are eager to shake off those persistent buyers who’ve been trying to keep the price steady. In plain words, the bearish action seems all set to kick off.

EURUSD Important Zones

Resistance Zones: 1.12540, 1.10600
Support Zones: 1.08250, 1.06870

Last week, things were pretty stable in the currency world as buyers were planning to take over from the sellers. But then, in late July, EURUSD had a bit of a tumble below the 1.10600 zone. This gave a boost to the confidence of the sellers, making them even more determined to keep up with the challenge.

Back in June, the bulls decided to step in after a downward trend. They were able to take the currency pair down to the 1.06870 zone. These bulls kept adding to their buying orders and eventually broke through the important 1.10600 level. However, things took a bit of a twist when the cable lost some of its strength above the significant 1.2540 level. The sellers, who have a pretty strong foothold in the market, saw their chance and managed to penetrate.

The Bulls aren’t throwing in the towel just yet. The moving average crossing of days 9 and 21 is starting to spread out. This indicates that the sellers are putting up a good fight. The MACD (Moving Average Convergence and Divergence) indicator is also playing on the sellers’ team, diving lower. With the selling momentum gathering steam, the next target is set at that 1.08250 key level.

Market Expectation

Zooming in a bit to the 4-hour chart, the market is still dealing with some fallout. Also, the persistent buyers are not backing down either. This ongoing tussle is keeping breakthroughs in check. The sellers, though, seem to be finding their confidence and making their presence felt.

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